Sinostar PEC Q1 profit jumps 131% year on year

SINGAPORE - Petrochemical firm Sinostar PEC Holdings said its net profit jumped 131 per cent year on year in the first quarter to 26.44 million yuan (S$5.34 million).

This came on the back of a 43 per cent jump in revenue to 471.95 million yuan for the three months ended March 31.

Sinostar is one of the major downstream petrochemical producers and suppliers in Shandong, China.

Its main products registered improved sales in the first quarter, with revenue from processed liquefied petroleum gas rising 45.5 per cent to 256.3 million yuan, while propylene revenue was up 62.5 per cent to 90.7 million yuan.

The company is confident of its outlook in the next 12 months thanks partly to "the uptrend in oil prices into 2017," Sinostar said when announcing its results on Tuesday.

"The board is currently at the advance stage of negotiation to acquire an influential stake in a newly built propylene processing plant," it added.

Sinostar shares closed flat at 22.5 Singpore cents, ahead of the results announcement.